The Lake Resources N.L. (ASX: LKE) share price failed to gain traction in April despite the company releasing numerous exciting updates.

After closing March at 44.5 cents, the stock soared to its April peak of 56 cents on 17 April.

Sadly, its gains weren’t to last. Shares in the lithium hopeful plummeted to a 52-week low of 40.5 cents on 27 April before recovering slightly to close the month at 42 cents.

That marks a 5.6% fall for the 30-day period.

For comparison, the S&P/ASX 200 Index (ASX: XJO) climbed 1.8% last month.

So, what got the Lake Resources share price down in April? Let’s take a look.

Lake Resources share price slumps amid Kachi milestones

The Lake Resources share price slumped last month despite a barrage of news of the company’s flagship Kachi Project.

First up, the lithium hopeful revealed independent testing found lithium produced at the project had purity grades of over 99.8%. Stock in the company jumped 8% on the news.

It marked a major win for both the project and the direct lithium extraction technology (DLE), developed by partner Lilac Solutions, used there.

The technology was previously slammed by short sellers who were sceptical that it would work to make the process of extracting lithium from brine more sustainable.

And that wasn’t all. Lake Resources announced the project’s maiden production just two weeks later, sending its share price soaring 18%.

Kachi’s lithium pilot plant produced 2,500 tonnes of lithium carbonate equivalent using Lilac’s DLE technology. In a joint statement, both companies’ CEOs said:

Today, we’ve proven that it is possible to produce high-purity lithium faster and without evaporation ponds – all while protecting surrounding communities and ecosystems.

Finally, the ASX 200 lithium up-and-comer dropped its report for the March quarter on the final trading day of April.

The market remained unfazed by the $113 million of cash and $206 million of unused financing facilities found on the company’s balance sheet as of 31 March.

Lake Resources stock underperforms ASX 200

Unfortunately, last month’s slump was just the latest experienced by the Lake Resources share price.

The stock is currently 38% lower than it was at the start of 2023. It has also fallen 72% since this time last year. Meanwhile, the ASX 200 has risen 4% year to date and has fallen 1% over the last 12 months.

Not to mention, the lithium stock remains one of the most shorted on the ASX. It had a short position of 8.57% as of 27 April.

The post The Lake Resources share price dumped another 6% in April. Here’s the lowdown appeared first on The Motley Fool Australia.

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More reading

• What’s the forecast for the lithium price in May?
• Here are the top 10 ASX 200 shares today
• Here are the 10 most shorted ASX shares
• 2 ASX lithium shares this US institutional investor is buying up big (and one it’s selling)
• Making it rain: Could this signal a boom for ASX 200 lithium stocks?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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